This wasn't some big scheme - I found out by accident yesterday by returning a computer since they had a better deal a week later so I ordered the new computer and returned the first one unopened. They wouldn't refund to my Chase BA card, and instead refunded to an Amex I had with zero balance. So it didn't impact my Amex MR points, and the refund of course included the sales tax. The computer was a free shipping deal so weight didn't factor.

Paramount's comment about just getting cash makes a lot more sense! lol. I just had it in my head that I would get a credit back on my card and gave them an Amex!

I don't think this is unethical at all. It is their problem that they don't refund you with the card you paid on, and as a previous poster mentioned they encourage you to return mailorder items to their stores. I don't plan on doing this regularly but for those who are are doing the same thing with the Mint etc. I thought it was a useful tip.

refunded to an Amex I had with zero balance. So it didn't impact my Amex MR points

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What is your basis for this statement? I suspect if you have an mr account with Amex, they will reduce your mr point by this refund.

I had a negative balance on my Amex DL card and they reduced my skymiles balance that month. (this was a few years ago, but I can't imagine their approach has changed, or would apply differently to mr versus co-branded cards.)

Why does highly unethical come to mind? A thought MP was going to be a different type of forum!

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Without expressing an opinion as to what the answer is, wouldn't the answer be the same as mint coin ordering (for those that plan to deposit the coins)? If you return your web purchase in new, unopened, resellable condition, how is this any different than buying mint coins and then depositing them?

In both cases, you're costing the vendor the cc processing fee and freight costs...and not complying with their intended purposes.

If this were a small store owned by your neighbor, instead of Costco, would you still do this knowing that it was costing him money (because of the credit card merchant fees)?

Costco is run by frugal executives who operate it almost like a cooperative. The products are given a minimal markup over cost and the savings are passed along to its members. It's kind of a shame to be an expensive parasite on an organization that does so much good by saving millions of members money.

I have never done the Mint thing, but do not believe it to be illegal.

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The mint purchase brings with it what is best described as a "deemed representation" about it not being your intent to deposit the coins.

The mint bears the risk of free shipping and cc fees to achieve their goal. Cost-co bears these same risks with the expectation of dealing with a bona fide customer. These situations are highly analogous.

While some people call taking advantage of programs like the mint or this Cost-co lapse unethical, we should also look to a longstanding principle widely accepted in England. This principle is called "invitation to treat." What this means, in a nutshell, is if a company sets itself up to be taken advantage of, then it is perfectly defensible (defencible there) for people to abuse them. Big companies set the rules that most things in our lives go by (cell phone contacts, car leases, etc), and British law allows them to be fully taken advantage of when they let situations slip through the cracks.

I'd say this isn't much (if any) worse than signing up for a credit card to get the 75k mile bonus...with the full intent to cancel a few months later. The card issuer isn't buying 75k miles for a 4 month account. We all know this...and while these short term card members are a "parasite" on the banking system (maybe they would offer 150k sign up bonuses if they knew people would stick longer?)...the ethics card is rarely (ever?) played in those threads.

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In practice, I think more than a few large returns for cash at a local cost-co will at a minimum get you a speaking to with the store manager. Not inconceivable to see them cancel and refund your membership (though I don't think you need to be a member to make an online purchase). Plus the hassle of queuing up to make a return at most cost-cos should be considered before undertaking this approach.

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